General Motors and Chrysler will receive up to $17.4 billion in short-term loans from the US government as part of an aid package to the troubled auto industry.
President Bush announced the rescue plan at the White House.
According to details of the plan made available to CNBC.com, the package involves $13.4 billion in short-term financing from the $700 billion Wall Street bailout fund, known as TARP.
An additional $4 billion will be made available in February, though that will be contingent on drawing down the remaining $350 billion of the TARP fund.
The rescue package includes limits on executive pay and warrants for non-voting stock.
The money comes with strings attached. If the companies are not viable by March 31, 2009, the loan will be called and all funds returned to the Treasury, according to the plan. Moreover, the companies can't issue new dividends during the period.
The package also includes conditions on operations, such as reducing company debt and making sure wages are competitive with transplant auto companies by the end of 2009.
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>GM and Chrysler to Receive Up to $17.4 Billion in Loans
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CNBC.com with wires